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    cheryld's Avatar
    cheryld Posts: 3, Reputation: 1
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    #1

    Nov 4, 2007, 01:35 PM
    Working Capital Management.
    1. Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (I) cash and (ii) net working capital:
    a. Paying out a $2 million cash dividend.

    b. A customer paying a $2,500 bill resulting from a previous sale.

    c. Paying $5,000 previously owed to one of its suppliers.

    d. Borrowing $1 million long-term and investing the proceeds in inventory.

    e. Borrowing $1 million short-term and investing the proceeds in inventory.

    f. Selling $5 million of marketable securities for cash.
    taiciad's Avatar
    taiciad Posts: 2, Reputation: 1
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    #2

    Dec 15, 2007, 11:01 AM
    Working Capital Management. Indicate how each of the following six different transactions that Dynamic Mattress might make would affect (I) cash and (ii) net working capital:

    a. Paying out a $2 million cash dividend.
    b. A customer paying a $2,500 bill resulting from a previous sale.
    c. Paying $5,000 previously owed to one of its suppliers.
    d. Borrowing $1 million long-term and investing the proceeds in inventory.
    e. Borrowing $1 million short-term and investing the proceeds in inventory.
    f. Selling $5 million of marketable securities for cash.
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